Irvine-based Vizio Inc. hopes to boost sales of 3D TVs by letting consumers sample the technology up close.
The market-share leader for flat TVs in North America rolled out the red carpet earlier this month at South, an upscale sports bar in Santa Monica, to debut its newest line of 3D TVs, tablets and Blu-rays for a VIP list of athletes, actors, executives and local media.
The event was hosted by Los Angeles Clippers star forward and Vizio pitchman Blake Griffin.
Vizio founder and Chief Executive William Wang also made a guest appearance.
First Time
The latest marketing push is a first for Vizio, which tends to rely on big-budget TV spots and event sponsorships to tout its brand, according to Paul Gagnon, director of North America TV research at Santa Clara-based DisplaySearch, part of Port Washington, N.Y.-based NPD Group Inc.
“This isn’t something that Vizio has done before,” he said.
Vizio designs and markets its flat TVs from its Irvine headquarters.
It was relatively unknown when it started in 2002 amid the flat-screen boom. The company now has yearly sales of about $3 billion and has taken large chunks of business away from big-name rivals, including Samsung Group of South Korea, and Japan-based Sony Corp. and Funai Electric Corp., which sells sets under the Philips brand in the U.S.
Vizio intends to continue using South and other bars, restaurants and hotels in Southern California as it rolls out new products and accessories, according to Bart Brown, vice president of marketing.
“We’re trying to bring our new technology to the masses through social engagement,” he said.
While face-to-face marketing is new to Vizio, the strategy has been used to tout 3D technology elsewhere.
Vizio Takes Page
Vizio took a page from the marketing playbook of British Sky Broadcasting Ltd. The British company became the first to broadcast a live sportscast in 3D to the public in early 2010, when nine pubs around the U.K. aired a Premier League clash between Arsenal and Manchester United.
Attendants at South were given Vizio theater 3D glasses at the door and invited to check out the bar’s 33 3D TVs. Most of the patrons watched the University of Southern California and University of California, Berkeley, football game on ESPN’s 3D channel. Others watched 3D movies and played video games.
Vizio took the opportunity to talk up its tablet, which debuted earlier this year and aims for a share of the market dominated by Cupertino-based Apple Inc.’s iPad.
Tablet
The entire entertainment system and lighting at South is now managed by one Vizio tablet, which controls the audio-visual system, lighting, music and televisions.
The push comes a few weeks before Vizio rolls out a 3D bundle pack for less than $700. The set includes a 42-inch 3D TV, four sets of glasses, a Blu-ray player and 25 hours of free downloads from vudu.com. It’s expected to be available early next month, according to Brown.
Vizio is bullish on 3D technology as cable networks such as ESPN roll out 3D channels, and game makers such as Santa Monica-based Activision Blizzard Inc. introduce more 3D titles.
Activision, the parent of Irvine-based Blizzard Entertainment Inc.—the largest software company in Orange County—debuted its first 3D title Call of Duty: Black Ops late last year for the PlayStation 3 and Xbox 360 consoles.
“We believe 3D gaming is going to help 3D take off in the home,” Brown said.
Shipments of 3D TVs rose to 5.2 million units in the second quarter, up 124% from the prior quarter, according to DisplaySearch.
That’s about 10% of flat TV shipments, according to Gagnon, who likened 3D adoption to the pace for high-definition TV five years ago.
Doing Better
“In many ways 3D is doing better,” he said.
Gagnon doesn’t expect Vizio’s latest marketing plan to elevate the brand nationally or drive significant sales, but said it would serve as a good case study.
“We really don’t think in our pricing outlook people will pay huge a premium for a 3D feature,” he said. “3D is interesting, but it’s not something you want to view all the time.”
Vizio executives are decidedly more optimistic.
“We absolutely believe 3D is going to take off, and we’re placing some pretty big bets on it,” Brown said.
